Getting to grips with your finances through debt consolidation

ShoppingDid playing Santa Claus tip the bank balance into the red during the holidays

Unsure if you’re moving into 2015 ahead of your finances?

Managing multiple loans, credit cards and other expenses can be challenging.

It may be time to consider consolidating your debts.

Once upon a time it was straightforward to manage your personal finances.  With a single bank account, and a passbook, keeping track of expenditure was simple.  These days, it’s common to find yourself juggling multiple accounts, several debts, direct debits and credit cards – each with different rates of interest payable.

Staying ahead of your debts and monitoring your financial commitments can cause headaches.  Before you know it, overdue notices start piling up, and, in some cases, sending your debts spiraling.  Over time, your credit history could be impacted, affecting your access to credit in the future.

How can you tidy up your finances?
Did you know that, depending on how much equity you have in your property, you could tip your financial commitments into a single loan?  Rather than paying off multiple debts at different interest rates, you could repay one?  It’s what’s known as debt consolidation.  Of course, ensure you read the fine print regarding interest rates, fees and charges – and ascertain whether the new rate is significantly lower than what you’re paying now.

Consolidating your debts is just one piece of the puzzle.  If you’re struggling to manage your money, having one big repayment commitment each month could create bigger headaches for you.

Time to build a better budget?
Why not develop a well-honed budget and take a proactive approach to your everyday spending, to find out where your money is going? There are plenty of useful tools, such as the MoneySmart Budget Planner and the Department of Human Services Fortnightly Savings Planner, at your fingertips.

Need help making sense of multiple debts?  Contact Us today.